Auto and industrial parts retailer Genuine Parts (NYSE:GPC) will be announcing earnings results tomorrow morning. Here’s what to look for.

Genuine Parts beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $5.97 billion, up 2.5% year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations.

Is Genuine Parts a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Genuine Parts’s revenue to grow 2.3% year on year to $5.71 billion, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.55 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Genuine Parts has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Genuine Parts’s peers in the automotive and marine retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. O'Reilly delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 1.2%, and Monro reported a revenue decline of 3.7%, falling short of estimates by 1.5%. O'Reilly traded down 1.2% following the results, while Monro was also down 10.9%.

Read our full analysis of O'Reilly’s results here and Monro’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the automotive and marine retail stocks have shown solid performance, the group has generally underperformed, with share prices down 2.5% on average over the last month. Genuine Parts is up 4.9% during the same time and is heading into earnings with an average analyst price target of $133.64 (compared to the current share price of $126).

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